100 jobs lost after Abbott Government announcement on Renewable Energy Target

A DAY after an announcement about one of Australia’s last remaining climate policies, 100 jobs have been lost.

Portland - Keppel Prince manufactures wind turbines and employs staff from the local community. They are also in the process...

A DAY after the Abbott Government announced it wants to scale back one of the remaining incentives for the renewable energy industry, one company has moved to sack about 100 staff.

Engineering company Keppel Prince revealed to its workers this morning that it will close part of its factory in the western Victorian town of Portland, which builds wind farm towers.

In a press release, the move was attributed partly to the “continuing uncertainty” over large scale projects in Australia including the future of the Renewable Energy Target (RET).

Keppel general manager Steve Garner at the plant in Portland with part of a wind tower. Picture: ROBIN SHARROCK

The RET was set up to encourage the growth of renewable energy sources, such as wind farms, solar and hydro power, and to cut carbon emissions.

Yesterday, Industry Minister Ian Macfarlane revealed that the government wanted to scale back the RET and to exempt certain industries to protect blue-collar jobs.

The announcement of job cuts at Keppel Prince came as workers from a nearby Alcoa aluminium smelter celebrated the news that the industry may no longer have to participate in the RET scheme.

Not having to buy renewable energy certificates as part of the scheme will likely give the company a boost to its profits. The smelter, which reportedly employs 540 people full time and 180 on contract, was at risk of closing.

The RET currently requires 41,000 gigawatt hours of electricity in Australia to be sourced from solar, wind and hydro power by 2020.

This was originally expected to represent 20 per cent of Australia’s energy use but falling demand for electricity in recent years means it will likely be more like 26 per cent.

Mr Macfarlane has now flagged that the government wants this target to return to a “real” 20 per cent, which will mean it is reduced to between 26,000 and 28,000 gigawatt hours.

It also wants to exempt energy intensive, trade exposed industries such as aluminium production, copper smelting, zinc processing and cement-making, from participating the scheme.

The renewable energy industry is not happy about the change to the target, which the government is currently negotiating with Labor.

Wind turbine towers on the outskirts of Portland.

The Clean Energy Council estimates the cut to large-scale renewable energy is likely to be more like 64 per cent under the government’s proposal, which would devastate jobs and leave Australia well short of its promise to cut emissions.

Labor has so far rejected cutting the target back to a “real” 20 per cent, but industry insiders are predicting the party may agree to reduce it back to about 31,000-33,000GWh.

Keppel Prince has been the first company to react to the announcement of the government’s intentions.

Keppel managing director Steve Garner announced job losses to employees this morning.

Significant losses sustained from its wind tower construction projects as well as the uncertainty over measures such as the RET reportedly contributed to the decision.

The company has asked for voluntary redundancies and expects to have to shed about 100 staff. The wind tower fabrication plant will be mothballed, although the company will continue to seek future projects, “with a view to resume operations when feasible”.